Clearwire 2010 Annual Report Download - page 13

Wholesale Services
We offer 4G mobile broadband services through one or more of our Initial Wholesale Partners in each of our 71
domestic 4G markets. Approximately 27% of our wholesale subscribers were users of multi-mode 3G/4G devices
residing in areas where we have not yet launched 4G service, but from whom we currently receive nominal revenue.
Our Initial Wholesale Partners offer our services as part of their branded offerings. Under existing commercial
agreements, our Initial Wholesale Partners are able to offer the same types of services as Clearwire in our 4G
markets. Additionally, our Initial Wholesale Partners may offer customized services over our network, subject to
technical feasibility and no material degradation of the quality of the other services we provide over our network.
Our Initial Wholesale Partners generally market their branded version of our services to both existing and new
subscribers, through a variety of sales and marketing channels. Sprint currently offers their branded version of our
service in all 71 of our domestic 4G markets. The services are primarily sold in connection with multi-mode
devices. For example, Sprint currently offers 4G mobile broadband connection plans with its two new 4G-branded
smartphones. For 2010, the vast majority of our wholesale subscribers and wholesale revenues came from Sprint
and we expect that to continue for the foreseeable future. We are currently involved in arbitration proceedings and
related negotiations with Sprint to resolve issues related to wholesale pricing for Sprint 4G smartphone usage and
non-smartphone multi-mode device usage under our commercial agreements with Sprint. Although we currently
anticipate that we and Sprint will resolve these pricing disputes in the near term, the outcome of these proceedings
and the related negotiations is uncertain, and could have a material impact on our business and future operating
results. For more information, see “Risk Factors — We are currently involved in pricing disputes with Sprint
relating to 4G usage by Sprint under our commercial agreements, and if the disputes are not resolved favorably to
us, it could materially and adversely affect our business prospects, results of operation and financial condition,
and/or require us to revise our current business plans.”
Comcast and Time Warner resell our services in 56 markets as of December 31, 2010. We also recently entered
into agreements with new wholesale partners Best Buy and CBeyond, each of which we expect to begin offering our
services in 2011. Our agreements with each of our wholesale partners are nonexclusive, therefore we have the
ability to enter into additional wholesale agreements with other new partners.
Retail Services
CLEAR
TM
Mobile Broadband Services
As of December 31, 2010, we offered our CLEAR branded retail services over our 4G mobile broadband
network in 71 markets in the United States covering an estimated 112.0 million people, and we offer 4G mobile
broadband service in 2 markets in Europe covering an estimated 1.6 million people. We offer our CLEAR
subscribers choice and simplicity in our service offerings, which can be combined in multiple ways to meet the
subscribers’ specific needs. These offerings include day passes, service contract and no-contract plans, and bundled
services. Our mobile plans consist of a daily pass for a fixed fee, limited use monthly plans where subscribers
purchase a specified speed limit (e.g., 3 mbps) for a fixed price and unlimited monthly plans that do not limit the
amount of data usage, subject to our acceptable use policies. Our residential plans offer subscribers different
maximum download and upload speeds at various price points. The business services we currently offer also include
faster upload speeds for a fixed Internet access service and plans that bundle multiple mobile subscriptions.
Additionally, we offer bundled packages that allow subscribers to pick and choose from among the mobile and
residential plans, as well as our VoIP telephony service, enabling them to access the Internet when and where they
need it.
We also offer a multi-mode device that enables our retail subscribers to access both our 4G mobile broadband
network and networks operated by Sprint. Under the commercial agreements with Sprint, we have the right to offer
our subscribers access to Sprint’s CDMA and EVDO Rev. A networks, which will expand the geographic area in
which our subscribers that elect to purchase this access will be able to receive service.
We also currently offer fixed VoIP telephony service on our 4G mobile broadband network. As of Decem-
ber 31, 2010, we offered fixed VoIP telephony services to our retail subscribers’ homes and offices in all of our 71
domestic 4G markets. We are currently offering a service plan that provides subscribers with unlimited
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